By Sam Forgione
NEW YORK, Jan 23 Investors in U.S.-based mutual
funds pumped $9.32 billion into stock funds in the week ended
Jan. 16, the second consecutive week of inflows for such funds,
data from the Investment Company Institute showed on Wednesday.
The inflows were down from an estimated $14.33 billion the
previous week, said ICI, a U.S. mutual fund trade organization.
Funds that specialize in U.S. stocks attracted $5.05 billion
in new cash in the latest week, down modestly from $7.73 billion
the prior week.
The interest in stocks marks a sharp turnaround from last
year, when investors pulled about $151 billion from stock mutual
funds while committing roughly $307 billion to bond mutual
funds, according to ICI estimates.
The S&P 500 rose a slight 0.8 percent over the
reporting period. Several Federal Reserve officials voiced
optimism about U.S. economic growth in 2013, while upbeat U.S.
retail sales for December and strong corporate earnings for
banks JPMorgan Chase and Goldman Sachs boosted
Investors remained cautious, however, in light of Republican
opposition in Congress to increase the $16.4 trillion U.S. debt
ceiling. Failure to raise the debt limit could cause the U.S. to
default in coming months.
Bond funds still posted a strong turnout with inflows of
$10.6 billion in the latest week, the most since March of last
year. Inflows last week were at $9.42 billion.
Hybrid funds, which can invest in stocks and fixed income
securities, attracted inflows of $2.12 billion. The gains were
down modestly from inflows of $2.8 billion the prior week.
The following table shows estimated ICI flows for the past
five weeks (all figures in the millions of dollars) :
12/19/12 12/26/12 1/2/13 1/9/2013 1/16/2013
Total Equity -5,315 -4,307 -10,797 14,328 9,317
Domestic -5,289 -3,942 -9,314 7,731 5,046
World -25 -366 -1,483 6,596 4,271
Hybrid* -71 533 -154 2,802 2,122
Total Bond 100 2,532 2,321 9,422 10,599
Taxable 3,368 3,233 2,049 7,041 8,358
Municipal -3,268 -701 272 2,381 2,242
Total -5,285 -1,242 -8,630 26,551 22,039
*Hybrid funds can invest in stocks and/or fixed income